It would be interesting to see the same sort of diagram and discussion in the linked article that includes what happens when end users are using the AdBlock or Hosts block techniques.
It's fairly simple: none of those steps happen, because since the advertiser's scripts and iframes are blocked, they don't even know you've loaded a page with an ad on it.
Based on end-user experience during accessibility testing, I'm pretty sure they do detect the presence of tools such as AdBlock, test to see if certain elements were successfully provided before continuing with a specific set of ads, and also make some assumptions about providing "errors" to end users that only people with something like AdBlock or NoScript _should_ see.
Nonetheless there are websites that give you a notice to say that you have AdBlock enabled, and some even tell you to disable it in order to use the site....
